SIPITANG OIL & GAS INDUSTRIAL PARK(SOGIP)

SABAH OIL & GAS DEVELOPMENT CORPORATION SDN BHD In July 2010, the State Cabinet approved the establishment of the industrial park dedicated for oil and gas activities and the formation of a state owned agency called Sabah Oil and Gas Development Corporation (SOGDC). SOGDC acts as a purpose vehicle company to own, develop, manage and market an area of approximately 1,600ha / 4,065 acres in Mengalong, Sipitang District to be known as Sipitang Oil & Gas Industrial Park (SOGIP). The State Government plan is to build a world class integrated industrial park designated for O&G related and other heavy industries through industrial clustering. SOGIP is geared to attract new investment to the state worth RM35 billion, with 3,745 new job opportunities through its industrial clustering. SOGIP is being developed as a premier industrial park of choice for petrochemicals hub in the Asia-Pacific region.

SIPITANG OIL & GAS INDUSTRIAL PARK The Sipitang Oil & Gas Industrial Park (SOGIP), located within the Sabah, Brunei and Labuan economic triangle will become a focal point of new oil and gas investments in that region. Under the ambit of the Sabah state government, the 1,600-hectare SOGIP site is expected to attract new investments worth an estimated RM12 billion with the potential to create 30,000 new job opportunities when it is fully developed. SOGIP, which was approved in early 2011, has already attracted local and foreign oil and gas investors to scout possible investment opportunities on the site. The availability of natural gas as feedstock from Sabah’s offshore production facilities was one of the many attractive proposals that enabled SOGIP to be well positioned to spearhead the development of the oil and gas industry in the State. Jetties for importing raw materials and exporting various types of finished products will be built to give access to global markets.

Basic infrastructure facilities, utilities and general amenities will also be constructed on site. To make SOGIP site livable and appealing to the thousands of employees expected to be working on the site, new residential, retail and commercial developments will be built concurrently. As a sign of confidence on the site’s economic viability, PETRONAS Chemicals Group Bhd. (PCG) is building an ammonia and urea manufacturing complex at SOGIP at an estimated development cost of US$ 1.5 billion. As the first initiative in the park, the Sabah Ammonia-Urea (SAMUR) project is one of PETRONAS’ leading initiatives to monetise natural gas obtained from Sabah’s offshore wells. Located within SOGIP, the SAMUR Project was among the most recent and strategic developments supporting the oil and gas industry in Sabah. The Complex would comprise an ammonia plant, a urea plant and a granulation plant, as well as integrated utility units and jetty facilities. The ammonia plant is expected to produce approximately 2,100 metric tonnes per day (MTPD) of liquid ammonia while the urea plant will produce 3,500 MTPD of granulated urea. The construction of the SAMUR complex at SOGIP site that started in second quarter of 2013 has been completed and is now in full commercial operation.

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